The current XRPL native AMM is based on XLS-30, which brought automated market maker functionality to the XRP Ledger and connected it directly to the network’s decentralized exchange. This allows XRPL trades to tap into AMM pools, the order book, or a mix of both, depending on where liquidity is best available.
Furthermore, the current XLS-30 model uses a single constant-product structure. Constant-product pools are useful for volatile pairs, but they spread liquidity across the full price range. The new proposal is because this is inefficient for correlated assets, especially stablecoin pairs, FX pairs, and tokenized assets that usually trade close to a narrow value range.
Biggest Institutional Unlock XRP Has Ever SeenAccording to him, the upgrade is comparable to the kind of innovation that helped turn Uniswap V3 into a dominant DeFi trading venue on Ethereum, but with the XRP Ledger’s advantages of burned fees, fast transaction settlement, and very low transaction cost.
